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6/20/2011 1:05AM

Asia Today: Chinese Firms Pushed to Open Up

Chinese companies in the U.S. and Canada face increased scrutiny over accounting and disclosure practices, while social unrest persists in China's Guangdong province. WSJ's Jake Lee and Peter Stein discuss.

This transcript has been automatically generated and may not be 100% accurate.

go ... Chinese companies listed in the U S open up as they face increased scrutiny of accounting and disclosure ... I mean China's Guangdong ... like this often beat them ... this is Asia's today I'm JD I'm joined by Peet's the line on Kong Air Chief ... the Tejas recent column on this very hopeful that that that China accounting issues with at the U S equities copies this new SPC will force the pros can tennis more about what you'll say ... sure ... one of the key issues that's underlying the ... the concern about ... the company's listed not just in the U S but in Hong Kong and Toronto ... he is the um ... the ... the lack of scrutiny that the accounting ... aam comes under and that's ... probably because China does not have an agreement ... of with ... regulators overseas in the U S ... particular ... that allows people to look at the books of auditors' ... that are handling of the finances for these companies have ... been in use them when there are questions about ... the reliability ... of certain things that these companies are saying about their business it's extremely difficult to validate ... of information that companies again and ... so that's the problem should we expect any changes and on that front is not likely ... China has taken the view in the past that of ... they don't need to provide ... this is kind of access to overseas ... regulatory firms there are discussions going on will see ... a thing um ... the ... it's clearly in the interest of China nor its restore investors' faith ... in ... the success of ... these these companies ... to allow people would come and ... um and tickle of the books ... let's leave it to the Guangdong in China sounds it's a province that's being done by the Communist Party chief is happy Guangdong ... this sounds like that's not quite the case because Missing was purchased can use them laying out the landscape that what's going on in this ... in this province that has been going through ups ... of these protests that we've seen last couple of weeks to really I'm ... the worst unrest that's happened ... in this part of the country in quite some time ... Kylie was sparked it were concerns about ... a ... Sichuan migrant worker Putnam woman was pushed to the ground by police ... but really what's underlying this issue is on the ... broader sense of discontent as a whole province moves away from ... the ... low wage manufacturing for export ... um ... economy that's driven growth in the past into ... um ok more higher value added ... a type of um export credits for manufacturing growth ... the prom is a lot of people are going to left behind by this ... and ... I'm ... the ... the the question will be how can they manage this transition ... um while maintaining of social harmony ... what's worse consensus ever misses being seen is that entry solution in in in in transition in Corinth or is this something it's it's taken quite a long time as it develops its going to be an issue for awhile and bonds on and in many ways ... is as a major success story ... on it has the highest of ... GDP per capita in China ... and it is the home to a number of China's most cutting edge companies ... like BYD and Huawei ... um ten cents ... the problem is that there's still a lot of the province that is heavily dependent are a lot of people in the province were very heavily dependent on ... um old fashioned businesses like ... I'm selling jeans and ... things sneakers together and of the workers who are ... on the factories that produce the stuff ... and then this really the same workers sickening get a job if I was ... so would you do ... you um ... you try and um ... bring those people ends the new Comi work ... are they don't have to go back to ... their hometowns and look for work there ... they may not be old to um ... Tippett unaware that their opening ... show very challenging times for a seventy symmetry joining ... this is Asia's today ...